Why do we conduct assurance engagement?
The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion, providing reasonable or limited assurance, as to whether the audited body has complied with the specified requirements of the appropriate legislation (the ‘criteria’) in all material respects.
What are the three phases of the assurance engagement process?
The three phases of the assurance engagement process are planning, performing, and communicating. 3. The steps included in the planning phase of an assurance engagement are: • Determine engagement objectives and scope.
What are the types of assurance engagement?
Types of assurance engagement
- External Audits. An Auditor states an opinion as to whether the financial statements Give a true and fair view. …
- Review engagements. The auditor reviews the financial statements using less evidence than required by an audit.
What are the five elements of an assurance engagement?
The five elements of an assurance engagement
- A three-party relationship, involving: the practitioner, a responsible party and intended users.
- Appropriate subject matter.
- Suitable criteria.
- Sufficient, appropriate evidence to support the conclusion.
- A conclusion contained within a written report.
What are the three 3 most commonly sought assurance services?
In order of increasing level of rigor, accountants generally offer three types of assurance services: compilations, reviews and audits.
What is assurance engagement in auditing?
“Assurance engagement” means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria.
What is the assurance process?
Assurance services are an independent examination of a company’s processes and controls. Assurance aims to reduce information risk by improving the quality or context of the information. Accounting professionals are qualified independent practitioners who can perform such services.
In which type of assurance engagement should an auditor focus on organizational objectives?
In which type of assurance engagement should an auditor focus on organizational objectives? Performance audit engagement. (In a performance audit engagement, auditors perform efficient and cost-effective audits by focusing on achievement of organizational objectives, that is, key performance indicators.)
How many types of assurance are there?
There are two types of assurance engagements, which include reasonable and limited assurance engagements. Both of these differ from each other in the aspects mentioned above.
Who is the responsible party in an assurance engagement?
The three parties typically involved in an assurance engagement are: the responsible party, the users and the practitioner. The responsible party performs operations or provides information for the benefit of or relevant to users. This party is responsible for the subject matter over which assurance is sought.